Ripple has endorsed a UK government strategy to tokenize wholesale financial markets, including bonds, funds, collateral, and repo transactions. HM Treasury appointed Chris Woolard as Wholesale Digital Markets Champion in April, leading a task force of 54 firms including Ripple. The initiative estimates tokenization could add about $42 billion annually to UK economic output by 2035, alongside roughly $18 billion in yearly tax revenue, assuming Britain captures a share of a projected $88 trillion global tokenized asset market. The first use case targets a live tokenized repo trial by spring 2027, while the digital gilt bond project DIGIT is urged to launch by Q1 2027.
Ripple has backed a UK plan to move wholesale markets toward tokenized infrastructure across Britain. The strategy supports live use of digital bonds, funds, collateral, and repo transactions, aiming to shift activity beyond limited trials.
HM Treasury appointed Chris Woolard as the Wholesale Digital Markets Champion in April. He now leads the strategy through a task force of 54 financial and digital asset firms, with Ripple among the supporting companies.
The report estimates that tokenization could add up to about $42 billion to annual UK economic output by 2035. It also estimates roughly $18 billion in annual tax revenue by that year, contingent on adoption, regulation, and Britain gaining a portion of the tokenized asset market.
The potential size of the global tokenized asset market is $88 trillion by 2035, according to the strategy. Britain would need to secure a meaningful share to reach the projected figures.
"Onchain funds, bonds and repo aren’t experiments. They’re already happening, delivering onchain financial instruments that are cheaper, better and faster than their legacy equivalents," Ripple stated on July 13.
The tokenization project consists of nine action groups addressing collateral, settlement, legal standards, infrastructure, and market access. A tokenized repo is the first envisaged use case, with the task force seeking to run a complete transaction process by spring 2027.
The program will also advance DIGIT, the digital gilt bond project of the UK government. The report calls for the DIGIT pilot to proceed no later than the first quarter of 2027.
The report asks regulators to define whether tokenized government bonds can serve as collateral instruments. This could help organizations utilize digital securities in current markets, reducing reliance on separate pilot processes.
The UK has allowed tokenized securities in regulated environments. As reported, the Financial Conduct Authority and Bank of England are collaborating with 16 firms in their Digital Securities Sandbox, covering issuance and settlement of tokenized bonds, equities, and fund shares.
The Bank of England and FCA intend to enable production capabilities. But companies require rules on custody, capital treatment, ownership, and settlement currency for the Ripple UK tokenization project.
The task force has a 12-month delivery plan focused on live use cases rather than broad policy goals. Success will be gauged based on practical market activities and the development of robust secondary markets connecting with central and commercial banks.
Industry input has been sought regarding priorities and timing, with a consultation period ending September 4. Updates will be published throughout the year.
